Trump Urges End to Quarterly Corporate Earnings Reports/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Donald Trump called on regulators to replace quarterly corporate earnings reports with semiannual updates, arguing it would cut costs and boost long-term planning. The SEC has mandated quarterly reporting since 1970. Supporters of the change say it reduces short-term pressure, while critics stress investor transparency.
Trump Calls to End Quarterly Earnings Reports: Quick Looks
- Trump’s Proposal: Replace quarterly financial reports with semiannual filings.
- Platform: Announced via Truth Social post.
- History: SEC has required quarterly reports since 1970.
- First-Term Effort: Trump previously asked SEC to review the rule, no changes followed.
- Exchange Push: Long Term Stock Exchange also seeking elimination of quarterly mandate.
- Supporters’ View: Quarterly reports costly, time-consuming, promote short-termism.
- Critics’ View: Frequent reports keep investors informed of risks and performance.
Deep Look: Trump Calls for End of Quarterly Corporate Earnings Reports
WASHINGTON (AP) — President Donald Trump is renewing his call to eliminate the decades-old requirement for publicly traded companies to issue quarterly earnings reports, instead favoring semiannual disclosures that he says would save money and promote better corporate governance.
In a post on his Truth Social platform, Trump argued that the three-month cycle forces executives to concentrate on short-term performance at the expense of long-term growth strategies.
“This will save money, and allow managers to focus on properly running their companies,” Trump wrote.
Long-Standing SEC Rule
The Securities and Exchange Commission (SEC) has mandated quarterly reporting since 1970, establishing it as a central feature of U.S. financial transparency. These reports offer investors and analysts regular insights into company health, risks, and outlook.
Trump had raised the idea during his first presidential term, directing the SEC to explore the benefits of three-month versus six-month reporting schedules. No policy changes followed at the time.
Renewed Push From Long Term Stock Exchange
Trump’s comments align with a recent push by the Long Term Stock Exchange, a San Francisco-based trading platform designed for companies with longer strategic horizons. The exchange announced last week it would formally petition the SEC to eliminate quarterly reporting requirements.
Supporters argue quarterly filings create excessive administrative costs and discourage companies from going public. They also say the current system encourages executives to chase short-term earnings targets rather than focus on sustainable growth.
Critics Emphasize Transparency
Opponents caution that doing away with quarterly reports could weaken transparency. Investors, regulators, and markets rely on frequent updates to assess performance, detect financial trouble early, and evaluate risks.
For now, the SEC has not indicated whether it will revisit the issue. Trump’s renewed endorsement, however, could add political weight to the ongoing debate.
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